Stock Groups

Coach owner raises 2022 forecasts as strong demand outshines supply crunch -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILEPHOTO: A window in a Coach shop, Pasadena (California), January 26, 2015 shows handbags. REUTERS/Mario Anzuoni

(Reuters) –Coach bag maker Tapestry (NYSE) Inc increased its annual sales forecasts and profits on Thursday. This was due to a strong rebound of luxury goods demand, even though global supply chain problems threaten to cause a shortage.

Premarket trading saw shares of Stuart Weitzman’s owner rise 10%, while Tapestry announced a $1 billion share-buyback program.

Luxury goods have rebounded sharply from 2020’s pandemic-driven weakness. As people socialize and shop more, this has helped to boost the industry.

Tapestry’s peer companies, including Ralph Lauren Corp. (NYSE:) Ltd and Michael Kors Owner Capri Holdings. (NYSE:) Ltd raised their annual sales projections earlier this month, despite concern that global supply chains bottlenecks might cause a product shortage in the holiday season.

Tapestry also has Kate Spade and forecasts 2022 revenues of almost $6.6 billion compared to a prior forecast of $6.4 billion.

The 2022 adjusted earnings per shares range was also increased to $3.45-3.50, from $3.30 to 3.35.

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.



[ad_2]